We re-examine tacit collusion under a simple punishment rule in which firms match any lower price by their rivals, but otherwise leave their prices unchanged. We provide conditions under which this simple rule sustains collusion and is credible. Provided competition is imperfect, collusion can...

We study optimal dynamic selling mechanisms in a two-stage model where the buyer can search for a better price at the second stage. When this outside price is public, the optimal selling mechanism takes the form of a fixed first-stage price with price matching in the second stage. In contrast,...

This paper studies when and how intertemporal bundling arises in optimal dynamic selling mechanisms in a two-period setting, in which two objects are available for sale sequentially in different periods. When the buyer’s values of the two objects are independent, in contrast to conventional...